Milk processors across the EU announce further price cuts
Leading EU milk processors have announced further milk price reductions.
Arla in Denmark will cut by €2.50 per 100kg for March milk and by a further €0.20 in April. Across March and April, Fries land Camp in a in the Netherlands will cut prices by €0.30, and Dairy Crest in the UK will reduce their milk price by €2/100kg. Savencia in France will take €1/100kg off the March price, and Royal A-ware in the Netherlands will take 50c/ 100kg off.
Skim milk powder prices well below the intervention level are hampering hopes of market recovery in the EU, and the current slow rate of SMP sales from intervention is predicted to affect the market into the long term. According to market sources, the European Commission is considering a fixed price tender to encourage traders to buy more of its 375,700 tonnes of intervention SMP.
Glanbia Ireland CEO Jim Bergin has said further milk price reductions are inevitable, after recent cuts in the February price.
He said Glanbia Ireland are hopeful that the market tide may turn positive again in the fourth quarter of 2018. IFA national dairy committee chairman Tom Phelan said: “When setting the March milk price, co-ops cannot make the same mistake as they did last month.” “The milk price decisions some co-ops took for February milk have shown just how out of touch they are with the massive challenges to their economic sustainability that suppliers have been experiencing for the last number of months.”
“At our meeting last week, members of the IF A dairy committee were very clear that, while market returns continue to be challenging in this early part of the season, co-ops need to invest in farmers to help them cope after a horrendously long winter, late spring and a hectic calving season made worse by atrocious weather which left many exhausted and stressed. “Members from all regions have reported having to complement feed at high cost to themselves, as fodder stores have been depleted after cows were brought in early last autumn and had to be kept in till late this spring. “Despite this additional feeding, protein levels have plunged in March, according to most co-ops. Without any price cut at all, farmers will be looking at a depressed milk cheque for March.”
I CM SA president Pat McCormack said co-ops must hold the price of milk for March, and must not increase the price of feeds which dairy farmers now hugely depend on due to the fodder crisis.
At last week’s open day on the farm of Grass10 young farmer of the year Timmy Crowley and his family, at Carey’s Cross, Bandon, Co Cork, Irene Cullinane, Goleen; Pat Lehane, Douglas; Michael Kearney, Glanmire; Dan and Helen Crowley; and Flor Riordan,...